Non-banking finance company Northern Arc Capital today announced that it has raised ₹200 crore through issuance of rupee-denominated non-convertible debentures (NCDs).
FMO, a Dutch development bank, has invested in the NCDs, which were issued in two tranches of ₹100 crore each.
One tranche of ₹100 crore has been structured as a ‘green bond’, the proceeds of which will be used by Northern Arc to fund NBFCs for the financing of solar lamps, clean cooking stoves, electric and cleaner fuel vehicles, and also for the financing of water and sanitation loans. This is the first-ever green bond issued in the Indian impact investing space, a statement from the company said.
Northern Arc and FMO are closely engaged in structuring an instrument that will enable green-financing to retail borrowers, with the aim of catalysing this sector and encouraging the purchase and installation of assets that are beneficial to the environment.